A condition is not a mechanism. The category error in industrial policy conditionalities: a comment on Mazzucato and Rodrik’s “Industrial Policy with Conditionalities” (2026)
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2026
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Abstract
Abstract Mazzucato and Rodrik’s taxonomy of industrial-policy conditionalities usefully restores public value to public-private economic strategy. This comment argues, however, that the paper commits a category error: it treats contractual conditions as if they were operational mechanisms. A condition can express an obligation, but it cannot monitor decay, detect gaming, or maintain performance through time. Industrial policy therefore needs trajectory diagnostics, including policy-induced turbulence, recovery dynamics, and Stability Overhead, to convert conditionality into governance.
| Reference Key |
openalex_W7160187605
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| Authors | Philip Rey |
| Journal | industrial and corporate change |
| Year | 2026 |
| DOI |
10.1093/icc/dtag049
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| URL | |
| Keywords | Keywords not found |
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